Organizational Theory and Practice Report: Analysis of ASOS Plc.

This report provides a comprehensive analysis of ASOS Plc. from an organizational theory perspective. It delves into various aspects of the company's management, including managerial styles, leadership approaches, and motivational strategies. The report examines the organizational structure, highlighting its flat hierarchy, inter-departmental coordination, and hybrid approach to centralization and decentralization. It also explores the company's diverse and inclusive culture, emphasizing its impact on employee innovation and engagement. Furthermore, the report analyzes the participative leadership style adopted by ASOS Plc., discussing its effectiveness in fostering collaboration and achieving organizational goals. It also examines the concepts of organizational power and conflict within the context of the company's global presence. The report concludes with recommendations to enhance organizational performance, based on the analysis of ASOS Plc.'s practices.

Organisational
Theory and Practice

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Managerial Style.....................................................................................................................3
Organizational Structure and Culture.....................................................................................5
Leadership Style.....................................................................................................................7
Organizational Power and Conflict........................................................................................8
Motivational Strategies...........................................................................................................9
Appropriate Corporate Examples and Literature.................................................................10
Recommendations to Increase Organizational Performance................................................11
CONCLUSION..............................................................................................................................12
REFERNCES.................................................................................................................................13

INTRODUCTION
Organizational theory and practice helps to study structure, relations and design of an
organization. These theories and practices helps to identify the relevant pattern for the
organization to solve the conflicts and achieve desired goals effectively and efficiently.
Furthermore, helps to choose best and appropriate theories of the organization in order to help
them function efficiently (Woo, 2021).
The report has chosen ASOS Plc., the world’s largest retail brand to better understand the
organization management. The report examines various theories to analyse managerial style,
leadership styles and motivational strategies. Moreover, it examines the organizational structure
and culture along with its influence on employees. The report even discuss the organizational
power and conflicts in the workplace. The study provides corporate examples accompanied by
recommendations to increase organizational performance.
MAIN BODY
Managerial Style
The managers play different roles in the organization in order to achieve desired goals
effectively and efficiently. For instance managers to resolve a conflict, represent at board
meetings and so forth. Professor Henry Mintzberg devised ten primary managerial roles or
behaviours so as to identify different functions of the managers in the organization. The theory of
Mintzberg managerial roles are defined under three sections accompanied by roles of a manager.
The CEO of the ASOS Plc. is Nick Beighton, leads world’s largest fashion retail brands. The
company promotes the Mintzberg managerial roles in the order to deal effectively with the
changing business environment (MacKian and Simons, 2021). As per the Mintzberg, the
managerial roles are divided into three sections which are discussed below:-
 Interpersonal roles aims to relate the authority delegated to the manager in an
organization
 Informational roles aims at creating effective channel of communication in order to
transmit important data and information.
 Decisional roles aims to process such as negotiations, implementation of strategies or
policies and decision making process.

Further the above sections are allotted with different managerial roles in order to bring
efficiency and effectiveness in the managers functions.
SECTION ROLES
Interpersonal  Figurehead
 Leader
 Liaison
Informational  Monitor
 Disseminator
 Spokesperson
Decisional  Entrepreneur
 Disturbance Handler
 Resource Allocator
 Negotiator
Interpersonal Roles
 The Figurehead: The manager is require to perform certain responsibilities such as social,
legal and ceremonial duties. The managers is seem to be an inspirational force for its
employees. The members of the organization look managers as figurehead.
 Leader: this role refers to the leadership attributes towards the employees or teammates
or entire organization. The ASOS Company’s CEO, Nick Beighton comprises innovative
leadership attributes which reflects the mission of the business. Furthermore, builds trust
and give people confidence in order to increase morale amongst the employees.
 Liaison: The managers are require to communicate internally and externally effectively
on behalf of the organization (Thomas, 2021).
Informational Category
 Monitor: The manager main role is to monitor the employees’ performance and other
seek out other relevant changes in the organization and in business environment. This
role helps to increase productivity and effectively fulfilling well- being needs.
 Disseminator: In this role the manager communicate significant information to its team
members or employees (Nylund, Brem and Agarwal, 2021).

 Spokesperson: The manager is considered as the face of an organization. The role aims to
communicate organizational goals and values to outside members.
Decisional Category
 Entrepreneur: The manager is require to control the changes in the organization by
solving conflicts, devising innovative ideas and implementing them.
 Disturbance Handler: The manager took in change in case of unexpected events and
further, helps to combat such risk factors within the organization.
 Resource Allocator: The manager aims to maximise resources by minimising its wastage.
Thus, the role involves the allocating of resources effectively as well as assigning staff in
the organization (Mogaji and et. al., 2021).
 Negotiator: Manager is require to take part in the negotiation process so as to achieve
desired goals in efficient manner. The manger must consider the interest of its team
members to accomplish task successfully.
Organizational Structure and Culture
STRUCTURE
The organisational structure's goal is to define roles and duties, as well as authority
delegation and effective communication channels among the organization's various hierarchical
levels. When there is no adequate organisational structure, employee morale suffers, resulting in
ineffective decision-making (Krishnan and et. al., 2021). Furthermore, it may have a detrimental
impact on the work environment, necessitating the creation of an effective organisational
structure in order to fulfil long-term objectives.
Organizational Hierarchy
ASOS Plc. consist of flat organization structure, it is type of organizational structure
which has few levels between management and staff level employees. This form of structure
aims to promote the involvement of staff so as to let them participate effectively in the decision
making process. The company’s structure helps the employees to feel secure and even higher
access to the information or data. Moreover, the structure allows effective and expedient decision
making process for ASOS Plc. and further, increases organizational commitment in the
employees.
Inter- Departmental Coordination

The ASOS Plc. possesses high coordination amongst the various departments. Even the
company aims to form inter- department teams in order to accomplish projects and task requiring
multiple expertise. Moreover, the company has systematic process in order to monitor the
coordination between the different departments and further, ensure work efficiency in the
organization.
Centralization v. Decentralization
ASOS Plc. consists of hybrid structure i.e. traits of both centralization and
decentralization. The company highly supports decentralized for its decision making process.
The roles and responsibilities are clarified and the employees often set their goals with proper
employment relations and mutual coordination (Thérivel and González, 2021). Furthermore, the
company also adapts centralized approach to make sure that the supervisors oversee the
employees’ tactics and efforts.
Communication
The company has devised intricate system for ensuring effective channel of communication
between the employees and different managerial levels. The communication process aims to
enhance the company’s organizational structure. As it results in easy flow of information along
with less conflicts and misunderstanding.
CULTURE
ASOS Plc. promotes diverse as well as inclusive workplace culture. The company has its
strong global presence with varied production lines in several countries; as a result, the company
ensures that its organizational culture is inclusive of diversity and further, formulate the internal
policies and strategies to combat discrimination in the workplace. The corporate culture aims to
encourage the innovative ideas and other creativity skills in order to facilitate growth to
individuals and teams helping them in career progression as well as in their professional/
personal development. Moreover, the company has supportive leadership style which helps to
increase the morale of employees and job satisfaction amongst the employees or team members.
The major pints to understand the ASOS Plc.’s organizational culture are:-
 Acts as an effective strategic tool to understand and communicate company’s policies
and values and even witness environmental changes (Gong and Ribiere, 2021).
 The company identify possible gaps between the work culture and employees’ different
backgrounds.

 Helps to relate the employees with work culture of the company.
Furthermore, the CEO of ASOS Plc. helps their millennial employees to strengthen their
Innovative DNA (iDNA) skills. These skills involves questioning, observing, networking,
experimenting and associating. Thus, helps in effectively influencing employees to
contribute best towards the organizational goals.
Leadership Style
ASOS Plc. adapts participative leadership style, which aims to encourage its employees to
participate in decision making process as well as in managerial decisions. This style of
leadership allows the company’s leader to regulate and interact with the employees and different
managerial levels so as to resolve the conflicts and misunderstandings. Furthermore, allows the
employees or team members to provide feedback regarding their strategic tactics and business
operations (Coward, 2021). The participative leadership style opted by the company helps to
increase the motivational level amongst the employees. Even helps in increasing organizational
commitment as well as ownership amongst the employees and other stakeholders.
Effectiveness of Leadership Style
The participative style of leadership is highly effective in achieving desired goals and
sustainability in the market for long term. According to the ASOS Plc. the employees in the
organization is required to be valued for their suggestions or feedback and even recognized for
their efforts as well as time in the organization. This form of leadership style helps to identify the
potential and current disputes within the ASOS Plc. and ultimately helps to resolve disputes
The participative leadership style accompanied by innovative attributes of the leaders
allows the internal collaboration as well as cooperation amongst the employees, managerial
levels and different departments (Chowdhury and Quaddus, 2021). As the cooperation and
collaborative work is important for the company for its strong global presence and even helps to
maintain the brand image. The company with the effective leadership attributes require to value
inter- departmental feedback and input. Moreover, helps in increasing the expansion of the
business and better performance of teams.
As ASOS Plc. comprises of effective functional teams which contributes their best by
working collaboratively in order to fulfil company’s numerous business goals and objectives, as
well as accomplish duties. The leadership style provides a compelling and practical vision for the
company to attain effectively and efficiently. All employees are supported in their advancement

equally and transparently through the human resource management system and organisational
training. This results in effective team building within the company for diverse projects, as well
as departments’ responsibilities and functions, rather than nominal groups.
Organizational Power and Conflict
Generally, the power means the ability to influence the people to do particular task or
something. Similarly organizational power influences the members to do something which the
organization wants. Power can create positive impact as well as negative impact. As it can create
issue when it comes to employees because power changes the behaviour of people and further,
power led people to prioritize their own goals and desire before others. Moreover, powerful
people ignores the other needs, feelings and their perspectives. And when any threats comes
against their position in the company, the act unethically to preserve their power and position in
the company (Gjøsæter and et. al., 2021). On the other hand, ASOS Plc. which is world’s largest
retail brands and global presence, evolve power within organization. The company biggest issue
is its need to have power and maintain the same in order to survive in the marketplace.
Furthermore, this need may lead to several conflicts in the workplace. The global presence of the
company with employees from different backgrounds are expected to work collaboratively,
harmoniously and productively. Whereas, the company aim to focus on need to achieve more as
team rather than to compete amongst employees, as the company believes that more successful
and efficient the employees more would be productivity and ideal workplace.
As per McClelland’s Need Theory the people consist of three needs which is require to be
fulfilled at the workplace (Jordan, 2021). These are discussed below:-
 Firstly, is the need for achievement
 Secondly, the need for affiliation
 Lastly, the need for power.
Generally in the larger organizations such as ASOS Plc., the need for power comes at the top
priority in the workplace and later adhered by need for achievement and affiliation.
Conflict and need for power go hand in hand in an organization. The company must aim to
eliminate conflicts in the workplace. As the conflicts causes negative impact on the quality as
well as on work efficiency. Generally, the root of the conflicts is the unhealthy employment
relations or poor channel of communication or inability to control emotional intelligence. ASOS
Plc. aims to maintain and strengthen its effective channel of communication accompanied by

appropriate leadership styles, organisational structure and managerial roles in order to avoid
conflicts in the workplace. Thus, the main strategy of the company to resolve conflict is by
keeping in mind the perspectives of other persons and their interests or objectives, as the
company mission is to encourage its employees towards organizational goals effectively and
efficiently.
Motivational Strategies
ASOS Plc. encourages and even maintains the performance of its experienced staff through
competitive monetary remuneration and other benefits. The company combines various
motivational strategies such as bonuses, management incentive plan and so forth in order to
increase motivational level among employees so as to achieve desired goals effectively and
efficiently. There are various motivational strategies which the company combines in order to
inspire employees or teammates and boost the productivity.
Maslow's Hierarchy of Needs is a motivational theory that focuses on an individual's
needs at various levels. Humans meet their wants in a hierarchical order in order to become
motivated, according to the notion (Vrontis and et. al., 2021). The basic requirements are at the
bottom of the hierarchy, while the ultimate aim, self-actualization, and is at the top. The needs
are divided into categories based on the hierarchical order described below.
 Physiological Needs: Food, air, water, health, sex, and other necessities are termed
fundamental requirements. Individual motivation stems from their basic requirements,
which leads to improved quality of life.
 Safety Needs: The second level focuses on the need for safety or security. Individuals
operate more productively in environments where they are safe and secure. Job stability,
health and life insurance, savings, and other benefits are all included at this level.
 Love and Belonging Needs: In order to make people feel valued and cherished, the level
stresses the need for connection, companionship, and love. Individuals may experience
sadness and low morale as a result of a lack of such needs.
 Esteem Needs: These requirements show an individual's desire to be respected, to be
recognised and appreciated, and to achieve status. It leads to dignity, self-assurance, and
independence.

 Self- Actualization Needs: This urge resulted in the realisation of a person's potential.
These requirements can be met in a variety of ways, including the acquisition of specific
skills, the pursuit of a desire, and so on.
Some of the ASOS Plc.’s motivational strategies are discussed below:-
1. Flexibility in the Work Environment: The Company allows flexible scheduling for their
employees through effective management approach. Furthermore, promotes trust and
confidence amongst the employees. As satisfied employees helps to boost the
productivity in the organization.
2. Reward Accomplishments: The employees feels motivated if they are recognized for
their efforts and time contributed in the organization. Employees who are praised for their
efforts contribute their best towards their organizational goals effectively. Furthermore,
higher productivity lead to higher safety performances (Do and Mai, 2021).
3. Provide Career Progression: Employees need to be trained and nourish professional
attributes in order to provide clear path for their careers. The company is require to
provide educational development opportunities for employees such as educational costs,
participation in seminars and others in order to attain long term success.
4. Provide Immediate Feedback: The employees need to be provided feedback so as to
improve their performance. Further they need to be appreciated for correction of their
problems so as to make them move forward towards new opportunities towards the
progress of their new tasks.
5. Create Incentives: In addition, employees respond effectively and perform better when
they are provided with certain incentives such as gift cards, pay holidays, cash bonuses
and so on. It helps to increase their morale, further, ASOS Plc. has benefits and
compensation ratings of 3.6 and even company provides Employees Stock Ownership
Plans as one of their motivational strategy.
Appropriate Corporate Examples and Literature
ASOS Plc. corporate strategy is to improve and expand its business by providing solutions.
The company aim to build sound supply chain and encourage responsible business practices by
developing confidence among the customers. The Organizational Performance helps the
organization to compare its actual outcomes with the intended outputs. Some of the corporate
examples in relation to the organizational performance of the ASOS Plc. is its program to reduce

overhead costs by lowering down the other utilities costs. Furthermore, the “lean workflow”
process opted by various companies helps to devise cost efficient systems by re- evaluating their
manufacturing methods.
The organizational performance is defined by various authors differently. Organizational
theories, practices, attributes enhance and justify the organizational performance. According to
Suliman (2001) the performance is the vital ingredient in work organization. Furthermore, the
organizational performance can be measured through expected behaviour and other aspects
related to tasks. Higher the performance of the employees higher will be the productivity and
organizational performance. As per Jin (2007), the employers are require to treat workers as vital
internal resources in order to sustain higher employee satisfaction and productivity in the
organization.
Recommendations to Increase Organizational Performance
The key to the effectiveness organizational performance is formulating and implementing
right tools and strategies to accomplish desired goals effectively and efficiently (Sharma, Chadha
and Kautish, 2021). Some of the recommendations are discussed below:-
 Open for Feedback: Customer input is critical to achieving success and growth.
Customers should be able to provide feedback and suggestions in novel ways, according
to the company. This can be accomplished by sending surveys to their e-mail addresses
and awarding stars. This strategy will not only increase client happiness but also improve
the company's operations.
 Prioritise the Customers: Customer service is critical to the organization's excellence.
For customer service, the organisation needs hire capable staff. They must embody
qualities such as patience, client satisfaction, and the ability to attract new customers. The
customer support representative must analyse the feedback on a daily basis and respond
appropriately.
 Ethical Practice: The Company’s leader is usually in charge of giving directions and
approaches to the workforce, as well as being held accountable for poor performance.
The organisation should follow ethical business practises and avoid offending local
culture. Another suggestion is to train personnel who speak multiple languages and
cultures.

 Benchmarking Method: The strategy aids the company in comprehending the changing
environment and competitors. It also aids in the formulation of plans in accordance with
it. In order to target potential customers, the organisation might use effective KPI.
 Use of Technology: The Company must gradually increase its capacity and invest in the
development of new innovative items in the pace of technology. In addition, the
organisation must expand its presence by attracting significant off-trade consumers.
CONCLUSION
The above report concluded various organizational theories and models to better understand
the organization management. The report examined the managerial roles along with the
organizational structure and culture to achieve high performance. The report discussed leadership
style and motivational strategies opted by ASOS Plc. Even it discussed the effects of
organizational power and conflict. Lastly, it highlighted corporate examples and various
recommendations to encourage organizational performance.